Ahold E-commerce Hanneke Faber, Chief Commercial Officer. Commerzbank, Frankfurt, May 12, 2016

Ahold E-commerce Hanneke Faber, Chief Commercial Officer Commerzbank, Frankfurt, May 12, 2016

Content Introduction Global industry trends Ahold s E-commerce strategy & plans 2

Hanneke Faber Chief Commercial Officer & Member of the Executive Board, Royal Ahold 3

1 restaurant....combatting food waste E-commerce sales: 1.8B a global top 50 e-tailer Millions of loyal customers in 3,253 stores 236,000 proud associates 2015 sales 38.2bn 2015 A global top 25 retailer Leader in sustainability Strong and trusted consumer brands 4

Ahold 2015: Strong results in both the US and in Europe US - 62% of sales Europe - 38% of sales 5

Ahold announced intention to merge with Delhaize Merger completion expected mid 2016 Ahold Delhaize will be a 60 billion, global top 10 retailer 6

Disruption: A combination of unmet consumer needs and new technology 8

Highly Disrupted Industries Established market leader Disruptor Photography 1854 - Founded 1996-140K associates, Worth $31B 2012 - Bankrupt 2010 - Founded 2012-13 associates; 1B takeover by FB 2015 - Valuation $35B Travel "Our guests don't want the Airbnb feel and scent 2007 - Founded 2012-2Mio stays 2015 - >1M rooms Valuation >$10B Unmet consumer need Developing pictures time-consuming Hassle to share pictures Travel agencies require visits and waits Lack of independent advice Cancellation fees New technology Digital cameras and smartphones Internet Social media Internet Big data Artificial intelligence 9

Much of the Retail industry has been disrupted Apparel Consumer Electronics The old: The new: % of total market online (2015): USA Holland Belgium 18% 15% 10% 25% 26% 12% Source: US Census bureau and industry reports; Thuiswinkel Marktmonitor 2015, Kleding & Schoenen 10

The Food retail industry has not been disrupted - yet 11 Source: SparkOptimus

But it is unlikely Food Retail is in a safe zone More value Time is a luxury Living better Unmet consumer needs Visit 3+ stores for groceries to get best deals Being thrifty is seen as smart, even cool even for the well-off Grocery shopping takes time (store, lines, payment etc.) Even online grocery takes time (putting order in, wait at home for it) 43% of US consumers have picked up a prepared meal at a grocery store in past month Obesity Healthy eating becoming a moral act 65% wants to know more about where food comes from (US, 2014) Uncertainty about what is really healthy 12

A disease on the rise (really) 13

But it is unlikely Food Retail is in a safe zone More value Time is a luxury Living better Unmet consumer needs Visit 3+ stores for groceries to get best deals Being thrifty is seen as smart, even cool even for the well-off Grocery shopping takes time (store, lines, payment etc.) Even online grocery takes time (putting order in, wait at home for it) 43% of US consumers have picked up a prepared meal at a grocery store in past month Obesity Healthy eating becoming a moral act 65% wants to know more about where food comes from (US, 2014) Uncertainty about what is really healthy Big data Artificial Intelligence & robotics Internet of things New technology Price comparisons and 100% value transparency Tally is a retail robot that rolls around stores making sure shelves are stocked Microsoft Hololens enables you to interact with HD holograms in your world Predictive analytics Amazon s delivery drone delivers packages <5 pounds within 30 minutes Amazon Dash is a smart reordering button 14

My new best friend (and my mother-in-law s) 15

Robotics our grocery delivery robot will do for Grocery what Skype did for telephony (co-founder Skype, Starship Technology CEO) In test in London and DC 16

We expect strong E-commerce market growth in our geographies (Total and Food) Total E-commerce at ~9% of market now, expected to grow 10-15% p.a. through 2020 Food E-commerce smaller, but expected to grow faster (Holland grew +54% in 2015) > half of all retail growth will be derived from E-commerce through 2020 China and the UK already have more developed e-commerce/food e-commerce markets today E-commerce as % of total market - 2015 Food e-commerce as % of total market - 2015 18,0% 16,0% 14,0% 12,0% 10,0% 8,0% 6,0% 4,0% 2,0% 0,0% Expected growth rate '16-20: + 10-15 % p.a. 9,0% 10,0% 8% 8,0% 16% 16,0% US NL Be Most developed: China 5,0% 4,0% 3,0% 2,0% 1,0% 0,0% Expected growth rate '16-20: + 20-30% p.a. 1,0% 0,8% 0,4% 4-5% US NL Be Most developed: UK Source: combination of McKinsey, Euromonitor, Forrester, Ahold research 17

Looking forward: what could our industry look like by 2020, and 2025? Online as % of total - weighted avg US, NL, Be Total retail: 2015 2020 2025 @10-15% annual online growth 10 20 ~35 Food retail: @25% annual online growth 1 3 ~9 @50% annual online growth 1 7.5 ~45 18

Ahold s transformation to an Omnichannel retailer started >20 years ago Late 1980 s: James Telesuper (now ah.nl) 2001: Peapod.com acquisition 2012: Bol.com acquisition 20

Ahold e-commerce goals: In 2014, we declared ambitious new goals: 20-25% annual growth; 2.5B by 2017 2014 1.4 billion online sales* Ambition 2017 2.5 billion online sales* billion 1.4 2.5 Peapod Albert Heijn Online bol.com Peapod Albert Heijn Online bol.com *Estimated consumer sales includes sales from third parties (i.e.,plaza sales) 21

We communicated investments in growth for 2015-2017 Incremental - 60 Million EBIT Additional investments, primarily at Investing in talent and capabilities 1,000+ IT experts (NL and US) Incremental impact on NL operating margin -/- c25 bps in 2015 22

and shared our business model Online grocery bol.com 2014 EBITDA in mature home delivery markets 2-3% 2014 EBITDA including investments in growth c-/-2% 2014 EBITDA C3% 23

Ahold E-commerce 2015 Sales results: 1.8 billion (+23 % vs LY); record growth Big 3 ; +new projects ah.nl #1 online retailer in the Netherlands / Belgium ~ 900 million #1 online food retailer in the Netherlands (ah.nl) ~ 300 million #1 online food retailer in the United States ~ $650 million + new pilots: Gall.nl (Wine & Liquor) Ah.tmall.hk (AH on Alibaba, China) Instacart & Google Express pilots at Giant/S&S 24

Strong 2015 Omnichannel results: E-commerce delivered incremental growth, on top of strong traditional store growth 38.2 36.6 ONLINE 32.7 Total sales growth at constant rates: 4.3% FY 2014 FX FY 2014 Week 53 Gas (ID) ID Sales (ex gas) In billion Euro s Non-ID Sales (ex gas) FY 2015 25

and Ahold s most valuable customers shop both Bricks & Clicks Store-only shoppers More than double annual spend Omni channel shoppers 26

Ahold E-commerce: Strengths Strong online brands in dense urban markets Easy and inspirational online shopping experience Broad range of high quality products Serving customers anyhow, anytime, anywhere Operational excellence in online fresh food 27

Strong brands with market leading positions #1 online retailer in the Netherlands / Belgium 6.2 million active customers/month >10 Mio items for sale >10,000 marketplace partners ( Plaza ) Average items / order: 1.8 Winner 2016 Best Dutch Webstore #1 online food retailer in the Netherlands (ah.nl) Covers 86% of Dutch households with Home Delivery 28,000 items for sale: larger assortment than biggest AH grocery store Average items / order: 74 #1 online food retailer in the United States Covers > 50 million people, 17% of U.S. Population with Home Delivery Average items / order: 55 Co-branded with supermarket brands by region 29

Ahold brands operate in dense urban markets, which allows us to be profitable in home delivery The Netherlands (404 p/km2) and Belgium (361 p/km2) are in global top 10 Most densely populated countries. U.S. North Eastern Seaboard ranks as the 11th most densely populated global region in the world (450 p/km2) Our 25 years of online logistics experience makes us profitable on mature, dense routes 30 Source: persquaremile.com

Predictive analytics & personalization at bol.com 32

Predictive analytics & Personalization Exclusive personal offers on ah.nl 33

AH.nl: tens of thousands of recipes, straight to list 34

Peapod: One-click easy nutritional filters 35

Proprietary systems HR Leading, innovative technology capabilities 1000+ Omnichannel IT experts (Amsterdam, Utrecht, Chicago, Boston) Agile, autonomous teams, with state-of-the-art software development skills Best-in-class application of big data concepts and techniques Supply chain systems Central replenishment systems (<1 day of inventory) Warehouse management systems with smart picking algorithms (>400 items / hr food picking) Transportation Price management Web and mobile experience Automated optimized routing (84% full vans) Patented yield management real-time scheduling (fee / slotting) Driver mobile field technology - text alerts for ETA, arrival and pickup Automatic benchmark pricing Integrated pricing with stores, including zip code-level pricing in U.S. Personalized offers, valid off- and online Strong mobile interfaces (40%) Real-time personalized websites Intelligent search Recipe integration Guess my order Top retail apps: Appie #1 in NL; Peapod top 10 in U.S. InternetRetailer.com Customer service systems Advanced customer service systems supporting multiple centers and phone / web / Chatbot / email Track and trace Sophisticated fraud protection (low bad debt) 36

Ah.nl/Peapod assortment: Unique ranges of food products Own brand Own-brand sales 2015: AH.nl 51% Peapod 31% Quality and diversity in Fresh Fresh / frozen sales 2015: AH.nl 49% (>stores) Peapod 40% (>stores) 38

Ahold E-commerce: Strengths Strong online brands in dense urban markets Easy and inspirational online shopping experience Broad range of high quality products Serving customers seamlessly, anyhow, anytime, anywhere Operational excellence in online fresh food 39

Seamless customer experiences: Serving customers anyhow, anytime, anywhere Ever more seamless shopping experiences 1. Omnichannel (personal) offers through popular mobile apps and website 2. One omnichannel loyalty program 3. Easy payment 4. Free wifi in all stores Diverse delivery options 1. Broad store network 2. Home delivery (>90% of online orders) 3. Pick-up points Contactless payment (790 AH stores, 83%) 40

Operational excellence in fresh food, built on omni-channel sourcing and logistics Best-in-class sourcing for on- and offline Highly efficient central picking Optimized transport, leveraging the Ahold network 42

Future Ahold E-commerce strategy: More customers More choices More places & Most efficient Market share - and market growth Expand assortment and service options Geographic and brand expansion: Home Delivery in dense urban areas, and Pick up Best-in-Class fulfillment: Expand and improve on current best models 43

Summary Omni-channel is at the heart of Ahold s strategy E-commerce has become an increasingly important aspect of our business We have leading online positions with a strong track record We continue to invest to drive growth and create long-term value 44

Cautionary notice This presentation contains forward-looking statements, which do not refer to historical facts but refer to expectations based on management s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those included in such statements. These statements or disclosures may discuss goals, intentions and expectations as to future trends, plans, events, results of operations or financial condition, or state other information relating to Ahold, based on current beliefs of management as well as assumptions made by, and information currently available to, management. Forward-looking statements generally will be accompanied by words such as anticipate, believe, plan, could, estimate, expect, forecast, guidance, intend, may, possible, potential, predict, project or other similar words, phrases or expressions. This presentation contains Ahold forward-looking statements as to, amongst others, global industry trends, Ahold s e-commerce strategy and plans and the intended merger between Ahold and Delhaize. Many of the risks and uncertainties relate to factors that are beyond Ahold s control. Therefore, investors and shareholders should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the occurrence of any change, event or development that could give rise to the termination of the merger agreement, the risk that the necessary regulatory approvals may not be obtained or may be obtained subject to conditions that are not anticipated, failure to satisfy other closing conditions with respect to the transaction on the proposed terms and timeframe, the possibility that the transaction does not close when expected or at all, the risks that the new businesses will not be integrated successfully or promptly or that the combined company will not realize the expected benefits from the transaction, Ahold s ability to successfully implement and complete its plans and strategies and to meet its targets, risks related to disruption of management time from ongoing business operations due to the proposed transaction, the benefits from Ahold s plans and strategies being less than anticipated; the effect of the announcement or completion of the proposed transaction on the ability of Ahold to retain customers and retain and hire key personnel and maintain relationships with suppliers and on their operating results and businesses generally, litigation relating to the transaction, the effect of general economic or political conditions, Ahold s ability to retain and attract employees who are integral to the success of the business, business and IT continuity, collective bargaining, distinctiveness, competitive advantage and economic conditions, information security, legislative and regulatory environment and litigation risks, product safety, pension plan funding, strategic projects, responsible retailing, insurance and unforeseen tax liabilities. The foregoing list of factors is not exhaustive. Forward-looking statements speak only as of the date they are made. Ahold does not assume any obligation to update any public information or forward-looking statement in this presentation to reflect events or circumstances after the date of this presentation, except as may be required by applicable laws. Outside the Netherlands, Koninklijke Ahold N.V., being its registered name, presents itself under the name of "Royal Ahold" or simply "Ahold." 45

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